Moneycontrol PRO
Live: Commodity Markets Live: Oil Below $90; What Explains The Fall?

Neutral Avenue Supermarts; target of Rs 3740: Motilal Oswal

Motilal Oswal recommended Neutral rating on Avenue Supermarts with a target price of Rs 3740 in its research report dated August 04, 2022.

August 06, 2022 / 09:59 PM IST
  • bselive
  • nselive
Todays L/H

Motilal Oswal's research report on Avenue Supermarts

Revenue/sq. ft. has been sluggish (-8% CAGR) over the last three years. The management sees little cause for concern as the Mass Discretionary segment (27% of revenue) is yet to fully recover. It appeared optimistic that high bill values have partly compensated for the lower footfalls and cut in bill sizes. The higher store size has pulled down revenue productivity, but it gives DMART an opportunity to increase product offerings to the mass value customer, thus increasing its wallet share. It also offers a longer term growth visibility. Being on an ownership model, the lower revenue/sq. ft. in the initial period is less concerning as the benefits of long-term high ROIC far outpace the lower throughput.


We are cognizant of the prominence of new-age grocery models, rich valuations, and weak revenue/sq. ft. over the last few quarters. Subsequently, we maintain our Neutral rating with a TP of INR3,740.


For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Avenue Supermarts - 050822 - moti

Broker Research
first published: Aug 6, 2022 09:59 pm
ISO 27001 - BSI Assurance Mark